22Non-business use of business propertyU.K.
(1)In paragraph 5 of Schedule 4 to the Value Added Tax Act 1994 (matters to be treated as supply of goods or services), after sub-paragraph (4) (non-business use of business asset treated as supply of services) insert—
“(4A)Notwithstanding paragraph 9(1) below, sub-paragraph (4) above does not apply to—
(a)any interest in land,
(b)any building or part of a building,
(c)any civil engineering work or part of such a work, or
(d)any goods incorporated or to be incorporated in a building or civil engineering work (whether by being installed as fixtures or fittings or otherwise).”.
(2)This section shall be deemed to have come into force on 9th April 2003.
(3)This section does not apply in relation to any asset in respect of which the person in question or any of his predecessors became entitled before that date to a credit or repayment as mentioned in paragraph 5(5)(a) or 5(5)(b) of Schedule 4 to the Value Added Tax Act 1994 (c. 23).
(4)In subsection (3)—
(a)“the person in question” means the person carrying on the business referred to in sub-paragraph (4) of paragraph 5 of that Schedule;
(b)“predecessor” has the same meaning as in that paragraph;
(c)the reference to an “asset” is to anything falling within any of paragraphs (a) to (d) of the sub-paragraph (4A) inserted into that paragraph by subsection (1).